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PBO Says Build Canada Homes Will Add 26,000 Units as Federal Housing Spending Falls 56% by 2028–29

The budget watchdog warns the agency’s output is small relative to a looming decline in federal housing funds.

Overview

  • The PBO projects the new agency will produce about 26,000 homes over five years, including roughly 13,000 units affordable to low‑income households.
  • That output amounts to a 2.1% increase in completions and would address about 3.7% of a projected 690,000‑home shortfall by 2035.
  • Federal housing program spending is forecast to drop from $9.8 billion in 2025–26 to $4.3 billion in 2028–29 as key programs expire, which the PBO says would reduce CMHC’s capacity and supports such as the Canada Housing Benefit and the Affordable Housing Fund.
  • Build Canada Homes intends to expand factory‑built, modular and mass‑timber construction through bulk procurement and financing to target up to 20% cost reductions.
  • Finance and housing ministers described current allocations as initial steps that could change with future decisions, while Conservative and NDP critics called the measures inadequate.